AirTran Holdings, Inc. (AAI)

Lowest cost of operations, lower dependence on business traffic moderates effect of downturn, loyal customers - checkout airline forums.

Overestimated Earnings Growth

Mmm...airlines...

Q3 earnings will surpass EPS estimate of $0.11. AAI has been adding profitable routes in places like Milwaukee and Nashville like crazy. This doesn't sound like a company that's cash strapped, but rather one that sees excellent growth opportunities and needs cash to fund it, therefore the recent capital raise.

they have done a great job hedging fuel prices this year, they have great service, offer Wi-Fi. has been improving their efficiency set a company record for load factor last quarter of 80.7%. price has been betten up along with all airlines and their lack of earnings. which could result in a big boost to share price if any good news does arive.

however they have way to much debt, had to sell 2 new planes this year to help pay off some of this, but should be ok in the future. however this debt does hinder thier growth ability in the near future could start expanding again late 2011.

all in all this small efficent company has a great service, and trading at 6.33 times next years earnings is a bargain.

I believe in this one (again)... Let's see if I am right about green thumbing the company whose airplane I flew on last May.

PEG = 0.16

low peg ratio

AIRTRAN: Bankruptcy is the Only Best Option.

Of all the airlines I've ever flown, this one always seems to be the best.

Negative cash flow, negative earnings, negative return on assets, negative return on investment, lots of debt= negative chance of beating the market.

We're going into the summer months expect to see an increase in travel. Though fuel prices are slightly rising the young airline continues to post profits.

Airlines, especially this one will see profits soon based on low fuel costs.

Not the biggest player, but over the years AAI have held their own. With gas prices where they are and the upcoming holidays I'd say this is worth holding til the end of the year.

efficiency will make aai a survivor when the economy rebounds

Good: Lean company with new equipment.

Bad: Major labor problems on the horizon with some of the lowest paid crewmembers in the business and the company asking for 10 percent cuts. Good to trade on the short term.

Ugly: long term management v employee relations make it a down bet.

Redemption: Purchase by SWA or Alaska?

This is an experimental portfolio consisting of small-cap or larger picks that have recently entered the $1.50-3.00 range (favoring the low end), with the theory being that most stocks entering this range are not going to stay there unless they've been there for a while already.

Part of my short airline Chapter 11 basket trade.

AirTran has one of the youngest fleets in the industry,

and its service has improved greatly over the past 5 years or so. They are the easiest airline to deal with , as far as their policies, fees, etc. are concerned, and do not have the extensive 'phone tree' that you are stuck with in the major airlines. I am a travel agent, and it seems that almost every time I need a special accommodation for my client they are anxious to work with me. That goes a long way towards my attitude in what airline I recommend to my clients. On the other hand, USAir is among the most difficult to deal with, and charges the highest periphal fees. When a client wants us to ticket a more difficult airline we tell them about the differences and then let them make the decision.